Multiplex's Wembley own goal

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A SENIOR manager at Multiplex raised concerns with the board and
the corporate regulator about the building company's accounts in
the week leading up to the release of its shock half-yearly
profit.

The February 24 result, which included a $68.3 million
write-down largely related to the problematic Wembley Stadium
refurbishment, sent the company's securities into a tailspin.

Despite assurances that it had accounted for all the Wembley
cost overruns, the company was to again disappoint with a second
write-down of the value of the Wembley project three months
later.

Multiplex's accounting group general manager officially raised
concerns in February, before being later made redundant, according
to an ABC Four Corners report, which airs tonight.

Asked whether the senior manager, whose name has not been
revealed, was taken seriously by management, Multiplex chief
executive Andrew Roberts told the program: "Of course, but I mean
not just his concerns. I mean at the time they were concerns of
others in both accounting and also importantly in relation to site
and senior construction management."

The Australian Securities and Investments Commission launched an
investigation into the company's disclosure regime following the
revelations of dissension within Multiplex ranks.

Multiplex itself revealed on March 8 it had known of the Wembley
cost overruns as much as three weeks before the release of the
company's horror result in late February, when it released an
indemnity statement covering the offer of company founder John
Roberts to put up $50 million of his own funds to cover the cost
overruns.

The Age reported in February that Multiplex had disagreed
with its auditor, KPMG, in preparing the company's half-yearly
accounts.

It also appears that the senior accounting manager had
unofficially raised concerns before Multiplex undertook a $200
million fundraising in late December. "I believe that there was
(an) examination in relation to the Wembley position and other
project positions in the portfolio," Mr Roberts said, when asked if
the senior manager had raised his concerns before the fundraisings
last year.

"Yes, there would have been concerns raised by him, and or
discussion and debate."

Asked why the concerns weren't made public, Mr Roberts said:
"Well, there's discussion and debate that continues in the normal
course of all our projects on a regular basis.

"Well, ultimately it's a view of senior construction management
and those experienced to make and assessment at that point in
time."

Mr Roberts would not comment on the status of ASIC's
investigation. Neither would the whistleblower comment, citing
legal reasons.

The whistleblower was retrenched in March.

"I understand that he was (made) redundant by mutual agreement,"
Mr Roberts said.

"I mean if the suggestion is that he was retrenched because he's
raised issues, then absolutely that's not the case."

KEY POINTS

■ A Multiplex manager raised concerns about
rising Wembley Stadium costs well before the official
announcement.■ ASIC will investigate Multiplex's
disclosure regime.